B.C. Finance Minister Carole James presents her last budget in the B.C. legislature, Feb. 18, 2020. Its modest surplus forecast was quickly erased by COVID-19 and a deficit nearing $13 billion. (B.C. government photo)

B.C. Finance Minister Carole James presents her last budget in the B.C. legislature, Feb. 18, 2020. Its modest surplus forecast was quickly erased by COVID-19 and a deficit nearing $13 billion. (B.C. government photo)

B.C. VOTES 2020

B.C. parties battle over tax promises to recover from COVID-19

Sales tax cut or another round of borrowed relief payments

The biggest-ticket promise of B.C.’s surprise 2020 election is a tax cut. Andrew Wilkinson’s proposed elimination of B.C.’s seven-per-cent sales tax for a year would cost, by the party’s own estimates, $6.88 billion, while bringing it back at three per cent would forgo another $3.9 billion.

By contrast, NDP leader John Horgan’s vow to send out another round of $1,000 pandemic relief payments to most families in the province is budgeted to cost $1.45 billion, added to a pandemic-driven provincial deficit headed for a record $13 billion without additional measures promised in the Oct. 24 election.

Wilkinson says the removal of sales tax will leave $1,700 more in the bank for an average family of four, as well as help small businesses weather the long winter of COVID-19. While Horgan points to the PST savings one would receive when buying a yacht, Wilkinson notes that lower-income people pay proportionately more sales tax because their income goes mostly to day-to-day expenses.

RELATED: B.C. parties pitch costly child care programs

RELATED: Leaders vow action on crime, cancer, COVID-19

Another divisive tax issue in the election is the NDP’s speculation and vacancy tax in areas with low rental vacancy rates. It caused an uproar in vacation destinations like the Okanagan, and a hasty retreat from the Gulf Islands and other rural areas where people have summer homes.

Horgan says the tax has caused 11,000 condos and other homes to be rented out at least six months of the year, and expects to raise $80 million from property owners who pay it. Wilkinson says the NDP tax doesn’t target speculators, and a B.C. Liberal government will impose a new “condo flipping capital gains tax” on resale of pre-build purchase contracts, a speculative market that has driven up costs in Metro Vancouver.

B.C. Green Party leader Sonia Furstenau went into the only televised election debate Oct. 13 without a full platform release, with the snap election called one week into her term as leader. Her first tax promise is to impose carbon tax increases on fossil fuels that were frozen under the former B.C. Liberal government and then postponed by former NDP finance minister Carole James as part of the government’s COVID-19 relief plan.

James also postponed payments from business on its new employer health tax, imposed on payrolls of larger companies to make up for the elimination of Medical Services Plan premiums paid by individuals and some employers on their behalf.

Horgan has accused Wilkinson of opposing the employer health tax, but the B.C. Liberal budget contains only a promise to appoint an “independent fair tax commission” to review all provincial taxes and recommend adjustments.

B.C. Liberal tax highlights:

• Eliminate the small business income tax, currently assessed at two per cent

• Introduce a seniors’ home care tax credit up to $7,000 a year for housekeeping, home repairs and supportive care

B.C. NDP tax highlights:

• a 15 per cent tax credit for businesses on eligible new payroll as part of the pandemic recovery plan

• a temporary 100 per cent PST rebate on selected machinery and equipment, not yet specified

B.C. Greens tax highlights

• End oil and gas tax incentives such as the deep-well drilling incentive that has been applied to B.C.’s fast-growing shale gas industry in the northeast.

• Immediately reinstate the scheduled carbon tax increase and return to increases of $10 per year


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC politicsBC Votes 2020

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

New Bulldogs forward Oak MacLeod fires a shot on the Grizzlies’ goal during the first period of a preseason game at the Alberni Valley Multiplex on Tuesday, Oct. 27. (ELENA RARDON / ALBERNI VALLEY NEWS)
BCHL: New guys get game winner for Alberni Valley Bulldogs

Alberni records a 5-4 overtime win against the Victoria Grizzlies

From left to right: Mark Walter, BJ Gillis, Kyle Munro and Danny Gillis of the Alberni Valley Disc Golf Club stand beside a disc golf basket at Dry Creek Park. (ELENA RARDON / ALBERNI VALLEY NEWS)
Disc golf expands to Port Alberni’s Dry Creek Park

New 18-hole course will be ready to play by spring of 2021

A Trio of Roses (CYNTHIA BONESKY)
ARTS AROUND: Stop and smell the flowers at the Rollin Art Centre

Next exhibit features Port Alberni artists Cynthia Bonesky and Jan Vriesen

PanAmour, featuring some familiar Port Alberni faces, will perform online via Zoom Oct. 30, 2020 at Char’s Landing. (SUBMITTED PHOTO)
Cure the blues with PanAmour at Char’s Landing

Tickets for virtual concert available online

Pat Lauder laughs as car after car pass his home on Josephine Street and honk, the drivers shouting birthday greetings. Lauder turns 80 this year. Oct. 22, 2020 ((SUSAN QUINN/ Alberni Valley News)
Hupacasath First Nation elder feted with family parade in Port Alberni

Pat Lauder celebrates 80 years in socially-distanced style

Provincial health officer Dr. Bonnie Henry updates the COVID-19 situation, B.C. legislature, Oct. 26, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps by 287, another senior home outbreak

Two more deaths recorded, community outbreak in Okanagan

MMFN First Nation has said that it will restrict access to portion of Highway 28 that passes through the Nation’s land until a road use agreement is reached. (Black Press file photo)
Vancouver Island First Nation blocks highway access to logging trucks in Gold River

Mowachaht/Muchalaht First Nation restricting access for Western Forest Products pending road deal

An untitled Emily Carr painting of Finlayson Point was donated to the Art Gallery of Greater Victoria by brothers Ian and Andrew Burchett. The painting had been in their family for several decades. (Courtesy of the Art Gallery of Greater Victoria)
Never before seen painting by famed B.C. artist Emily Carr gifted to Victoria gallery

Painting among several donated to Art Gallery of Greater Victoria

An arrest warrant has been issued for Brian Thomas, of Nanaimo, who is accused of throwing a “spear-like object” at a vehicle. (Photo submitted)
Warrant out for Nanaimo man who allegedly threw ‘spear-like object’ at vehicle

Brian Thomas failed to make court appearance, say RCMP

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
Rescued bald eagle that came to life in B.C. man’s car had lead poisoning

Bird is on medication and recovering in rehab centre

The B.C. Centre for Disease control is telling people to keep an eye out for the poisonous death cap mushroom, which thrives in fall weather conditions. (Paul Kroeger/BCCDC)
Highly poisonous death cap mushroom discovered in Comox

This marks first discovery on Vancouver Island outside Greater Victoria area

Janet Austin, lieutenant governor of B.C., was presented with the first poppy of the Royal Canadian Legion’s 2020 Poppy Campaign on Wednesday. (Kendra Crighton/News Staff)
PHOTOS: B.C. Lieutenant Governor receives first poppy to kick off 2020 campaign

Janet Austin ‘honour and a privileged’ to receive the poppy

Most Read